Economic Highlights

New Delhi, 4 July 2009

Mamata’s Kolkata Budget

MIX OF SPARK & BUREAUCRATIC TRAP

By Shivaji Sarkar

The earthly Maa, Maati, Manush, Mamata Banerjee was expected to bring in the people’s vision into her budget. Unfortunately, she has got caught in the bureaucratic trap. The innovation she may have had in her mind appears to have got lost. She got enamoured by the high-speed but low-achievement syndrome – bureaucratic malaise afflicting the Indian Railways for decades.

Mamata made a candid admission: there was nothing hunky dory during the last five years and promised to come out with a White Paper on it. She also called her predecessor Lalu Yadav’s projection as unrealistically high and as the new Railway Minister pointed out that at least one Rs 3400 crore public-private partnership (PPP) was mere publicity, so she had to give it up.

This apart, the revenue projections too have been reduced from the interim budget projections, which under pressure from Lalu did not take into account the slowdown in loading of goods to two per cent of the target last fiscal. Consequently, gross revenue projections have been reduced to Rs 88,419 crore from Rs 93,159 crore of the interim budget. Overall surplus has too been brought down to Rs 2,642 crore from 5,572 crore of the budget. However, the Railways borrowings and central budgetary support have increased to Rs 15,800 crore, a raise of Rs 5,000 crore thanks to the Finance Minister.

In such a situation, instead of announcing new trains, many of which are often not introduced, she could have taken a pique at trains like the pride of the 50s –the Janata Express. It was a new classless fast train with the latest cabin type coaches, a first those days. The train still runs, a favourite of the poor, but is in ramshackle condition. No railway minister has ever taken an interest in it. Even earthly Mamata missed the opportunity to revive the Janata and similar other trains. Sadly, the Railways do not need gimmickry by reintroducing all that is there but strengthen what it has with it.

Though the Tatkal scheme has been streamlined a bit, it has not been reduced to Rs 100 as claimed in her speech. It is Rs 100 for Sleeper Class and Rs 200 for AC Class as fixed charges plus there would be 10 and 15 per cent surcharge on the basis of the fare. Her speech neither indicates that the seats in this category would be reduced. Clearly, she needs to make a clear departure from Lalu’s unethical convoluted Tatkal system.  

Again, there is little substance in her Duranot non-stop trains. The Sampark Kranti non-stop train was introduced by the NDA railway minister Nitish Kumar. Mamata should have reviewed the technical and track capacity of the railways before introducing the so-called new trains. She should have ensured a culture of sustaining and improving what exists. Introduction of every new train has only resulted in the slowing down of the existing trains including the Rajdhanis and the Shatabadis.

In her reply, to the Budget she still has the option to introduce her new vision. She has it. She only needs to push through it, overlooking bureaucratic objections. Mamata also needs to introduce hop-in and hop-out long-distance trains free from harassment by railway ticket conductors.

The Yuva train also looks impractical. It is supposed to be 1500-km all-seated air conditioned train for Rs 299 and Rs 399. The youth may be strong but can anyone endure a 20-hour journey sitting all through?

There are, however, some sparks. But these are restricted to her Kolkata vision. For years, journalists have been agitating about the Basumati press, a historic institution with nostalgic connection for the Bengalis during the freedom movement. Bengal’s elite was associated with it. The State government did little by taking it over to finally virtually shutting it down. Mamata’s offer to take it over for use by the Railways is not only to restore the Bengali pride but also to resuscitate an institution.

In Europe, many such institutions are kept alive for the new generation take a glimpse of a living past. It is called industrial archaeology. By default Mamata may have introduced this here. But, she wants to play politics too. The Basumati press is with the Left Front government. If it parts with it, then it draws flak from its cadre and if it doesn’t it loses popular support. Either way Mamata is a winner.  

She has also exhibited that spark in the takeover of the wagon units of Burn Standard and Braithwaite, under the Ministry of Heavy Industries. The companies, based in West Bengal, are in poor health. Their closure would lead to job losses. The decision to take these over in the so-called “reforms’ – privatise and perish - era shows her real concern and “mamata” for the Bengal’s poor. She has also tried to exemplify that an elected leader, rooted in grassroots can go against the lobbyist-oriented politics of “reform generation”. It would not cost the Railways much but would instill hope among the poor - a real prescription to counter recession.

At the same time, the Eastern part has benefited least from the reforms era. Her concept of using the railway land along the freight corridor as land bank to set up industry is again a clear rebuff to those propagating Nandigram-type special economic zones (SEZ) or Singur-type land acquisition. How much it earns for the Railways is not the issue, but creating industry on the existing land, next to the freight corridor, should be considered an innovative approach. It would certainly make transportation easier and cheaper if properly implemented. Importantly, it could also bring in an industrial revolution in the East, long stalled by the conservative socialist-minded people.

Likewise, the past five years had ignored the wagon manufacturing sector. Now the Railways has decided to acquire 18,000 new wagons to replace its ageing fleet. It would give a boost to the Railways PSUs apart from making goods movement, often stuck by derailments caused by poor rolling stock, smoother.

The PSUs that are likely to gain from her new policies are Ircon International, a turnkey infrastructure construction company, Railtel (Telecom), Rites and Indian Railway, Tourism and Catering Company (IRCTC). The allocation for new railway lines has been increased to Rs 2921 crore from Rs 1100 crore in the interim budget. Apart from taking care of the safety aspects, the move would also generate business for the sagging public sector SAIL.

But Mamata needs to widen her vision. She need not have robbed Bihar of the two projects to create a new coach factory at Kanchpara in her State. Possibly she has settled the score of losing Dhanbad from the Eastern Railways. Well, the budget has some difference but it is not different. Would she be able to revise it by the time she prepares her reply to the budget debate? ---INFA

 (Copyright, India News and Feature Alliance)